Sandra is seeking a loan from the Bank of Smallville. The "price" for her loan money is the __________.

• principle
• interest rate
• collateral
• premium

__________ is the ability of an asset to be converted easily and conveniently into the medium of exchange.

• Convertibility
• Liquidity
• Accessibility
• Solidity

Why were many of the Fed's action restricted prior to 1935?

• The Fed was interfering in foreign exchange issues.
• The Fed's far-reaching powers were curtailed by the federal government.
• The Fed's Federal Open Market Committee (FOMC) had yet to be formed.
• The Fed still had to comply with the gold standard.

Suppose reserve ratio (rr) = 0.50. What, then, is the deposit multiplier?

• 1
• 2
• 5
• 0.5

The 1933 gold certificates were __________, which means they were redeemable in a commodity.

• fiat money
• representative money
• token currency
• banknotes